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Ulrich Theobald

East Asian monetary systems were traditionally based on commodity monies, the most famous of which were round copper coins (Cash) with a square central hole, and silver ingots (Tael, from ...
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East Asian monetary systems were traditionally based on commodity monies, the most famous of which were round copper coins (Cash) with a square central hole, and silver ingots (Tael, from around 1000 ce). While issue of the former was in the hand of the state, silver bars were privately produced and controlled. The Tael nonetheless served as a unit of account also in government ledgers. China was the first nation worldwide to use paper money backed by bullion reserve (c. 1000–1500), but fiat monies were not readily accepted by markets. Gold coins were exclusively used in Japan from circa 1600. With the discovery of Mexican silver, China and Japan became part of the silver-based world economy. Japan adopted the Gold Standard in 1897 and gained access to the world’s financial markets, while China’s currency landscape, even after modernization, remained fragmented and decentralized. With a favorable exchange rate against the US$, Japan recovered after World War II. The US$ devaluation in the Plaza Accord 1985 did not stop that boom. Excessive loans induced the asset price bubble of 1987. In the “lost decade” until 2000, the Bank of Japan pursued a volatile monetary policy, so in 1998 it was necessary to induce liberalization of the banking sector. Reform in the financial sector was also begun in South Korea after the Asian Crisis of 1997. The Chinese policy of Reform and Opening in 1978 first led to inflation and then to undervaluation of the Renminbi (Yuan), which supported the unique economic growth. The currency was made convertible in 1996 and was in 2005 pegged to a basket of foreign currencies. China’s banking system remains underdeveloped and suffers from the burden of indebted state-owned enterprises. China has accumulated huge amounts of foreign exchange. The RMB might become an anchor currency of a financial regionalism.

Tirthankar Roy

The origin of British India can be traced to warfare in 18th-century Europe and India, trade-related conflicts and disputes, and the East India Company’s business model. The state that ...
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The origin of British India can be traced to warfare in 18th-century Europe and India, trade-related conflicts and disputes, and the East India Company’s business model. The state that emerged from these roots survived by reforming the institutions of capitalism, military strategy, and political strategy. As the 19th century unfolded and its power became paramount, the Company evolved from a trading firm to a protector of trade. The rapid growth of the three port cities where Indo-European trade and naval power was concentrated exemplifies that commitment. But beyond maintaining an army and protecting trade routes, the state remained limited in its reach.

Matthew Romaniello

When the Mongol Empire expanded across Eurasia in the 13th century, it not only established a new political order but also unified the trade networks that spread across northern Eurasia, ...
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When the Mongol Empire expanded across Eurasia in the 13th century, it not only established a new political order but also unified the trade networks that spread across northern Eurasia, connecting China, Central Asia, the Middle East, and the East Slavs in Eastern Europe within one system. The collapse of Mongol rule and the rise of new states and dynasties, including the Ottoman Empire, Muscovite Russia, and Qing China, adjusted trade routes throughout Eurasia, but the commercial networks remained robust until the modern era. Historians have debated whether there was a notable “decline” of the overland caravan trade along the historic “Silk Roads” in the 18th century, as European maritime traders in Asia carried many of the goods that had traveled across Eurasia. The perception of a decline, however, is challenged by the robust intra-Eurasia trade among Russia, Central Asia, India, and China throughout the 19th century. This dynamic region was influenced by the maintenance and expansion of regional networks across Eurasia, the consequences of the involvement of state interests, and increasing economic regulations in the early modern period, and the variety of commodities exchanged east and west, which were far more than just a silk trade.

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